AP Food Processing Policy (2015–20)

AP Food Processing Policy

The State intends to be the most preferred destination for Food Processing Industry. The new Food Processing Policy aims to capitalize on the rich and diverse food production base of Andhra Pradesh to provide fillip to the sector.   Click for more..










Cold Chain Project Scheme

Cold Chain Project scheme is to provide integrated and complete cold chain and preservation infrastructure facilities without any break, from the farm gate to the consumer from the production site to the market. Pre-cooling facilities at production sites, reefer vans, and mobile cooling units also assisted under the Integrated Cold Chain projects. Scheme helps linking groups of producers to the processors and market through well-equipped supply chain.   Click for more..

APFPS Policy 2015-20
Cold chain Units:
  • Eligibility: 35% of Project Cost
  • Maximum limit of grant-in-aid: Rs.5Crs and Interest subsidy 5 years from COD @7% (subject to Max 2 Crs)

Cold chain Units for Establishment of Shrimp Processing Unit:
  • Eligibility: 50% of Project Cost
  • Maximum limit of grant-in-aid: Rs.5Crs and Interest subsidy 5 years from COD @6% (subject to Max 2.50 Crs)

Cold chain Units for Establishment of Fish Processing Unit:
  • Eligibility: 50% of Project Cost
  • Maximum limit of grant-in-aid: Rs.7Crs and Interest subsidy 5 years from COD @6% (subject to Max 2.50 Crs)

Integrated Food Park Scheme

Integrated Food Park Scheme (IFP) is to provide modern infrastructure facilities for the food processing along the value chain from the farm to the market. It will include creation of storage and processing infrastructure near the farm, transportation, logistics. The main feature of the Scheme is a cluster based approach. The scheme will be demand-driven, and will facilitate food processing units to meet environmental and safety standards.   Click for more..

APFPS Policy 2015-20
  • Eligibility: 50% of Project Cost
  • Maximum limit of grant-in-aid: Rs. 20Crs




Mega Food Park Scheme (MFPS)

Mega Food Park Scheme (MFPS) is to provide modern infrastructure facilities for the food processing along the value chain from the farm to the market. It will include creation of processing infrastructure near the farm, transportation, logistics and centralized processing centres. The main feature of the Scheme is a cluster based approach. The scheme will be demand-driven, and will facilitate food processing units to meet environmental and safety standards.   Click for more..

APFPS Policy 2015-20
  • Eligibility: 50% of Project Cost
  • Maximum limit of grant-in-aid: Rs. 20Crs


New Food Processing Scheme

This scheme is to increase the level of processing, reduction of wastage, value addition, enhance the income of farmers as well as increase exports thereby resulting in overall development of food processing sector. The scheme envisages extending the financial assistance for establishment of new food processing units in the state.   Click for more..

APFPS Policy 2015-20
  • Eligibility: 25% of Project Cost (Includes Plant & Machinery, technical civil works)
  • Maximum limit of grant-in-aid: Rs. 5Crs and Interest Subsidy 5 years from COD @7% (Subject to Max 2 crs)




Primary Processing and Collection Centres Scheme

This scheme is to create effective backward linkages through setting up of processing and preservation facilities at village level to enhance shelf life of perishable produces. The Scheme is applicable to both horticulture and non-horticulture produce such as: fruits, vegetables, grains& pulses, dairy products, meat and poultry etc.   Click for more..

APFPS Policy 2015-20
  • Eligibility: 50% of Project Cost
  • Maximum limit of grant-in-aid: Rs. 2.5Crs and Interest subsidy 5 years from COD @7% (subject to Max 1 Cr)


Technology Up gradation / Modernisation Scheme

The objective of the scheme is to increase the level of processing, reduction of wastage, value addition, enhance the income of farmers as well as increase exports thereby resulting in overall development of food processing sector. The scheme envisages extending the financial assistance for Technology Up gradation / Modernisation / expansion of existing food processing units in the state.   Click for more..

APFPS Policy 2015-20
  • Eligibility: 25% of new/up graded equipment cost
  • Maximum limit of grant-in-aid: Maximum limit of grant-in-aid: Rs. 1Cr



Waste Processing Unit Scheme

The objective of the scheme is to ensure proper utilization of the waste generated by FPIs in the clusters. Waste in the Food processing Industries is product specific. It is primarily organic residue of processed raw materials.   Click for more..

APFPS Policy 2015-20
  • Eligibility: 50% of Project Cost
  • Maximum limit of grant-in-aid: Rs. 2Crs



Schemes under APFPS 2015-20
Setting up/Upgrading Testing Labs (including NABL accredited)
For NABL approved labs:
  • Eligibility: 50% of Project Cost
  • Maximum limit of grant-in-aid: Rs. 2Crs

For Existing Food Processing Units:
  • Eligibility: 50% of Project Cost
  • Maximum limit of grant-in-aid: Rs. 5 Lakhs

For State Govt. Organizations and Universities
  • Eligibility: a) 80% of eligible Project
    b) 80% of cost of 2 technical staff in such Laboratories for 3 years
Reefer Vehicles
  • Eligibility: 50% of Cost of the reefer vehicle
  • Maximum limit of grant-in-aid: Rs.10 Lakhs each vehicle
Fiscal Incentives
  • Reimbursement of Power consumption charges @1.50 per unit for 5 years / Rs.1.00 per unit for Fish & Shrimp Processing units.
  • Reimbursement of Non-Agriculture Land Assessment (NALA) tax for the produce purchased direct from farmers.
  • Reimbursement of 100% stamp duty, Transfer duty.
  • VAT/CST/GST Reimbursement for micro & small enterprises (100%), medium industries (75%) & Large Industry Units (50%) for 5-7 years